New Trend: Volatility’s Up a Smidge, Even as Stocks Gain

By Brendan Conway

Dow Jones Newswires’ Kaitlyn Kiernan has an eye on an unusual trend this year: the market’s most closely watched volatility index is rising and falling alongside stocks much more often than usual. It’s doing this the most since 1996, by Kiernan’s count.

The market’s so-called fear gauge, which often moves inversely with stocks, is breaking that relationship more and more. If the VIX finishes up with the S&P 500, it will be the 23rd such instance so far this year. That would mean the two indexes have moved together 25% of the time this year-the most often since 1996, when they moved together 29% of the time.

It’s been quite a stretch of quiet for volatility traders lately. The volatility index has spent nearly all of 2013 below the 20 level — its long-term average — and lately has been sandwiched between 12.50 or so and 15 for a month.

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MAY 16, 2013 10:34 A.M.

eric gates wrote:

central bankers...around the world...have made a mockery of free-market capitalism. adam smith rolls in his grave while millions of investment zombies scour the planet doing exactly what bernanke et. al. tell them do do.

MAY 16, 2013 2:27 P.M.

Mtp wrote:

I think markets rising but looking tired ,, VXX seems stabilizing at 18 + level - the scenario is go long but have protection ...

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